90% of Bitcoin’s Provide Cap Has Been Issued, Miners Have 119 Years Left to Mine BTC – Bitcoin Information

0

On December 12th, crypto advocates celebrated the fact that 90% of the 21 million bitcoins that will ever exist had been put into circulation. Currently, Bitcoin’s inflation rate is around 1.88% per year, which is lower than the central banks’ traditional target reference of 2%. Additionally, the network’s inflation rate is expected to drop to 1.1% in 875 days after mining 19.98 million bitcoins.

Programmatic scarcity

One advantage that people enjoy about the Bitcoin network is that it is mathematical and predictable compared to monetary systems issued by central banks around the world that are based on the whims of policy makers and are completely unpredictable. At the time of writing, 18,899,800 BTC has been in circulation, which is roughly 90% of the 21 million BTC that will ever exist. Digital currency fans celebrated this milestone on Sunday, December 12th, the same day as the 11th anniversary of the official departure of Satoshi Nakamoto.

Glassnode diagram shared by r / bitcoin subscriber on Reddit u / Bitcoin_is_plan_A on Sunday, December 12th, 2021.

The 90% statistics can be viewed on data sites such as coinmarketcap.com and Glassnode’s percentage of the Bitcoin supply currently being funded. The discussion about 90% of the bitcoins being mined on Reddit also led to people asking how many bitcoins are being lost and stuck in unrecoverable wallets. While Bitcoin.com News recently released a Coin Metrics 2019 report on the state of lost bitcoins that believed that at least 1.5 million BTC would be lost, some Redditors estimate the number to be much more.

“Estimates of 3-5 million [bitcoin] are out there, “explained a Redditor on Sunday. “You can see onchain metrics that show how much bitcoin hasn’t moved [in the] last decade but that would be the highest possible and there are some who just haven’t moved despite having the keys. I think it’s about 3 [million]but we will very likely never know and it will continue to rise slightly. We also have a lag factor in the data as individuals can also have lost within 10 years. It is only accepted [for the] first couple of years [the] the biggest losses have occurred, so we put this data in. “

The annual Bitcoin inflation rate is estimated to be around 0.4% in 2030

While we don’t have a fixed number for how many bitcoins will officially not be recovered or lost, it is very different from the predictability of BTC issuance. Satoshi believed, and many crypto proponents believe, that lost coins simply add to the scarcity of the crypto asset. “Lost coins only make everyone else’s coins worth a little more,” said the inventor of Bitcoin. “Consider it a donation to everyone.” Since 90% of the existing coins are in circulation and the current rate of 900 BTC per day and 210,000 blocks with each halving, the next halving of the rewards is expected on May 6, 2024.

At the moment the block reward is 6.25 bitcoins per block and the rewards will drop to 3.125 bitcoins per block after the halving. Since the current Bitcoin inflation rate fluctuates between 1.75% and 1.88%, we can estimate that Bitcoin’s inflation rate will be around 1.1% after the halving. The Bitcoin protocol continually halves every 210,000 blocks until it reaches 0, which is estimated around the year 2140. Until then (in 2140), miners are expected to continue securing the network and processing transactions based on network transfer fees.

A total of two major halves in Bitcoin block rewards are expected by around 2030, and the halves that follow after this year will be fractions of BTC. Bitcoin’s rate of inflation is projected to be around 0.5% per year by 2028 and around 0.4% with 20,585,442 million bitcoins in circulation by 2030. It is estimated that by 2030 98.02% of the 21 million bitcoins that will ever exist will be mined.

As Bitcoin’s hashrate climbs to all-time highs, the time frames for when these changes will be exactly timed are pretty good approximations, but not set in stone. Currently, network participants (miners) dedicating hashrate to the BTC network have accelerated the time frame between the halves, and the daily output rate has been faster than previously suspected estimates.

Tags in this story

119 Years, 2% Inflation Rate, 2030, 210,000 Blocks, 2140, Bitcoin, Bitcoin (BTC), Block Rewards, BTC Issue, Central Banks, Circulating Supply, Fees, Halving, Halving, Inflation Rate, Issue Rate, Miners, Mining, Programmatic Scarcity, Issue Rate , Reward halving, Satoshi Nakamoto, securing the network, supply cap

What do you think of the fact that 90% of the 21 million bitcoins that will ever exist have been put into circulation? What do you think of Bitcoin’s programmatic scarcity and predictable rate of issuance? Let us know what you think on this matter in the comments below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a Florida-based financial tech journalist. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for bitcoin, open source code and decentralized applications. As of September 2015, Redman has written more than 4,900 articles for Bitcoin.com News on the disruptive protocols emerging today.

Photo credit: Shutterstock, Pixabay, Wiki Commons, Reddit, u / Bitcoin_is_plan_A

Disclaimer of liability: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement for any product, service, or company. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author are directly or indirectly responsible for any damage or loss caused or allegedly caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

More popular news

In case you missed it

You might also like

Leave A Reply

Your email address will not be published.